Print 6. Listed below are three lottery payout options, (Click the icon to view the lottery payout options.) Rather than compare the payout options at their present values, compare the payout options at their future value ten years from now. a. Using a 6% interest rate, what is the future value of each payout option? b. Rank your preference of payout options. C. Does corripuling the future value rather than the present value of the options change your preference of payout options? Explain. ?(Click the icon to view the future value factor table) Click the icon to view the future value annuity factor table.) "Click the icon to view the present value factor table.) 5(Click the icon to view the present value annuity factor table.) a. Using a 6% interest rate, what is the future value of each payout option? Compute the future value of each payout option. (Round your answers to the nearest whole dollar.) Option 1 Option 2: Option 3: Future value - EL - b. Rank your preference among payout options. most preferable next preferable least preferable c. Does computing the future value rather than the present value of the options change your preference between payout options? Explain. We can make a valid comesarison between the cavoul options (4) - compare the options at their present values or at their future values. - as long as we convert each payment option to its value (5) - using the same interest rate. The preference among the options (6) Valid comparisons can be made among options at any point in time, as long as we convert (7) cash flows to (6) point in time using (9) interest rale. 1: Data Table Option 1: Option 2: Option 3: $940,000 now $153.000 at the end of each year for the next ten years $1,550,000 ten years from now 2: Reference Print Periods 2% 1.020 1.040 1.081 1.082 1. 104 1. 128 1.149 1.172 1.195 1.219 1% 1.010 1.020 1.030 1.041 1.051 1.062 1,072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 Future Value of $1 6% 8% 1.060 1.080 1.1241.166 1.191 101 1280 1 262 1.360 1.338 1.469 4% 5% 1.040 1.050 1.0821.103 1.125 1.158 1.170 1216 1.217 1.276 1.285 1.340 1.316 1.407 1.369 1.477 1.423 1.551 1.480 1.629 16% 1.160 1.346 1.561 1.811 2.100 10% 12% 1.100 1.120 1.210 1.254 1.331 1.405 1.464 1.574 1.611 1.762 1.772 1.974 1.949 2211 2.144 2.476 2.358 2.773 2.594 3.106 2.853 3.479 3.138 3.896 3.452 4.363 3.797 4.887 4.177 5.474 6.727 9.646 10.83517.000 17.449 29.960 45.25993.051 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 2.436 2826 3.278 3.803 4.411 18% 20% 1.180 1.200 1.392 1.440 1.643 1.728 1.939 2.074 2.288 2.488 2.700 2.986 3.185 3.583 3.759 4.300 4.435 5.160 5.234 6.192 6.176 7.430 7.288 8.916 8.599 10.699 10.147 12.839 11.974 15.407 27.393 38 338 62.669 95.398 143.371 237.376 750.378 1,469.772 1.243 1.288 1.294 1.319 1.346 1,486 1.841 1.811 2.208 1.419 1.587 1.504 1.714 1.594 1.851 1.689 1.999 1.791 2.159 1.898 2.332 2.012 2.518 2 133 2.720 2.281 2.937 2.397 3.172 3 207 4.661 4.2926.848 5.743 10.063 10.286 21.725 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 1.539 1.001 1.665 1.732 1.801 2.191 2.688 3.243 4.801 1.710 1.798 1.886 1.980 2.079 2.653 3.388 4.322 7.040 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 378.721 3: Reference Periods Future Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.1202 .140 2.160 2.180 2.200 3.030 3.060 13.091 3.122 3.153 3.184 | 3.248 3.310 3.374 3.440 3.5063.572 2572 3040 4.122 4.184 4.246 4.310 4.375 4 506 4.641 4.779 4.9215.066 5.215 5368 5.101 5.204 5.309 5.416 5.526 5.637 5.887 6.105 6.353 8.610 6.877 7.154 7.442 6.152 6.308 6.468 6.633 6.802 6.9757.338 7.716 8.115 8.538 8.977 9.442 9.930 7.214 7.434 7 6627 898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12916 8.288 8.583 8.892 9.2141 9.549 9.897 10.637 11.438 12.300 13.233 14.240 15.327 16.499 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 10.462 10.950 11.464 | 12.006 12.578 13.181 14,487 15.937 17,549 19.337 21.321 23.521 25.959 11.587 12.189 12.808 13.486 14 207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 12.883 13.412 14.192 15.028 15.917 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 13.809 14.680 15.618 16.627 | 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42219 48.497 14.947 15.974 17.088 18.292 19.599 21.015 24.215 27.975 32.390 37.581 43.672 50.818 59.198 16.09717.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.680 60.965 72.035 22.019 2429726.870 29.778 33 066 36.786 45.762 57.275 72.052 91.025 115,380 146.628 186.688 28.243 32.03036.459 | 41.816 47.727 54.865 73.106 98.347 133.334 | 181.871 249.214 342.603 471.981 34.785 40.568 47.57556.065 | 66.43979.058 113.283 164.494 241.333 356.787 530.312790.948 1,181.882 48.88660.402 75.401 95.026 | 120.800 | 154.762 259.057 442.593 767.091 1,342.0252,360.757 4.163.2137.343.858 4 Reference Print Periods Present Value of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.626 0.797 0.769 0.743 0.7180.694 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.961 0.924 0.888 0.865 0.823 0.792 0.735 0.683 0.636 0.592 0.562 0.516 0.482 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.942 0.008 0.837 0.790 0.748 0.705 0.630 0.584 0.507 0.458 0.410 0.370 0.335 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0,452 0.400 0.354 0.3140 279 0.923 0.853 0.789 0.731 0.877 0.627 0.540 0.467 0.404 0.351 0.305 0.2680.233 0.914 0,837 0.766 0.703 0.6450.592 0.500 0.424 0,361 0.308 0.263 0.225 0.194 0.905 0.820 0.744 0.676 0.814 0.558 0.463 0.388 0.322 0.270 0.227 0.191 0.162 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.887 0.798 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.162 0.145 0.116 0.093 0.870 0.750 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.861 0.743 0.642 0.565 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.0200.012 0.007 0.004 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 5. Reference Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1 0.990 0.980 0.971 0.962 0.9520.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 2 1.970 1.942 1.913 1.886 1.859 1.333 1.783 1.736 1.690 1.647 1.805 1.566 1.528 2.941 2.884 2.829 2.775 2.723 2.6732577 2,487 2.402 2.322 2.246 2.174 2.106 3.902 3.808 3.717 3.630 3.548 3.465 3.312 3.170 3.037 2.914 2.790 2.690 2.589 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3,433 3 274 3.127 2.991 5.795 5.601 5.417 5.242 5.0784917 4.823 4.365 4.111 3.89 3.885 3.498 3.326 6.728 6.472 6.230 6.002 5.786 55825 206 4.868 4564 4.288 4.0393.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.314 4.078 3.837 8.566 6.162 7.786 7.435 7.108 6.802 6 247 5.759 5.328 4.946 4.607 4.303 4.031 9.471 8.933 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.491 4.192 10.368 9.787 9.253 8.760 8.306 7.867 7.139 6.495 5.938 5.453 5.029 4.656 4.327 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.1974.793 4.439 12.134 11.348 10.635 9.986 9.394 8.653 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 4.628 6.002 5.468 5.008 4.611 13.865 12.349 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.875 18.046 16.35114.877|13.590 12.462 11.470 9.818 8.514 7.4696.623 5.9295.353 4.870 22.023 19.523 17.413 15.822 14.094 12.783 10.675 9.077 7.843 8.873 6.097 5.467 4.948 25.808 22 396 19.600 17.292 15.372 13.765 11.258 9.427 8.0557,003 6.177 5.517 4.979 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 2.244 7.105 6.233 5.518 4.997 (1) O Option 1 O Option 2 O Option 3 (2) O Option 1 O Option 2 O Option 3 (3) O Option 1 O Option 2 O Option 3 (4) O at any point in time O only at the future point in time O only at the present point in time (5) O at the future point in time at the present point in time at the same point in time (6) O O differs if is the same regardless of whether (7) O all O most of the O (9) O (8) O different O the same different the same